American Express 1998 Annual Report Download - page 10

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8
We continued to enhance our three primary
distribution channels for financial services. These
include: a retail channel, consisting of our finan-
cial advisor field force, as well as direct (online,
telephone and mail) services; an institutional
channel with expanded 401(k) and defined bene-
fit capabilities; and a third-party distribution
channel, consisting of banks and thrift institu-
tions we partner with to offer our products to
their customers.
Retail Channel — We have one of the best advi-
sor retention rates of any firm in retail financial
services. Nonetheless, we think there is a large
opportunity to do even better. To help continue
to attract and retain a top-quality field force, we
are putting in place three alternatives that will
allow advisors to choose the level of structure,
services and compensation they receive. They are:
(1) an American Express-branded employee
We hope that gives you a sense of the overall
progress at American Express. The next several
pages will provide additional details on the
results, accomplishments and challenges in each
of our major business areas.
BUSINESS RESULTS
U.S. FINANCIAL SERVICES
American Express Financial Advisors continued
its impressive growth and, once again, delivered
record financial results. Income increased 16 per-
cent from 1997 and revenues climbed 11 percent.
Financial Advisors’ goal of helping clients meet
their financial objectives is closely linked with
expanding the base of assets we manage for them.
At the end of 1998, we had $212 billion in
owned, managed or administered assets, up from
$182 billion at year-end 1997.
AMERICAN EXPRESS FINANCIAL ADVISORS
ASSETS OWNED, MANAGED OR ADMINISTERED
Assets owned, managed or administered by American Express Financial Advisors increased 17 percent in
1998, reaching $212 billion. Continued growth despite market volatility demonstrates the value of working
with clients as part of a long-term financial planning relationship.
’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98
$225
$200
$175
$150
$125
$100
$75
$50
$25
(in billions)